Gold has enjoyed a rocket ride since it started in early December 2015, but right now it looks like gold is in a correction. Sure, I can get it into an impulse as well, but we have to see which pattern falls apart the most as right now it is still not clear enough.
If stocks created another leg down, then I can see gold heading up as fear buying seems to dominate the gold market at this time. Not all trading is open and some only partially open so it is still very lethargic on most contracts. I am sure it will heat up in the rest of the week.
For gold to be more bearish than I give it credit for, it would have to slice my bottom trend line in two, and then keep right on going.
I am down at the Micro degree level with the last 5 waves up and inside a bigger Minuette 5 wave diagonal run. I am going to mention the degrees a bit more as big moves are not necessarily big degrees, but they can be part of natural extensions, and during extensions is exactly when the smaller degrees show themselves, otherwise, you would never see them or they would be so small its not worth the effort to label them.
Nobody looks at the 10 year gold bull market as a small degree because it has travelled so tall that it must be a super duper SC or GSC degree fit. This is the furthest from the truth and is a way for the markets to always fool the high degree wave counters.